Sales Incentive And Performance Management Best Practices

Using sales incentives as a key component of a sales compensation plan is a practice that dates back to the early industrial era. This is reinforced by some very basic contemporary psychological principles that focus on enhancing behavior. The two main principles that support the widespread use of sales incentives today are:

  • The couple's actions and gifts are as close to time as possible.
  • There must be a line between participants and enforcement action.

In contrast to most corporate functions such as finance, engineering, product development, or human resources, the sale is a function in which the causal relationship between the sales representative's actions (business activity) and the results of those actions (sales) can be demonstrated. That's why sales commissions are so common to increase your sales through sales team incentives, but even though it sounds easy, it's really hard to do well.

The Importance of Sales Incentive Programs

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Companies that choose market-leading sales compensation software solutions employ a variety of best practices on which to use sales performance to differentiate themselves from competitors.

Accuracy and efficiency:

The systematic implementation of sales commission calculations is essential to minimize reliance on manual error-prone calculations and to provide advanced functionality for situations such as repayment processing, quota changes, transfers, overlays, duplicate lending, and splits.


Centralize as many administrative tasks as possible with features that minimize reliance on IT support for process management and deliver trusted and dependable results in the field. By minimizing the use of systematic spreadsheets and proprietary software solutions that require IT assistance when you need to change systems, you can keep up with the ever-changing competitive market.

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